Uptick in manufacturing pushes IIP growth to 7.1% in December

Industrial output grew by 7.1% in December, maintaining the recovery momentum, on the back of robust performance by manufacturing as well as higher offtake of capital goods and non-durable consumer goods.

The Index of Industrial Production (IIP) had grown at 2.4% in December 2016, as per the data released today by the Central Statistics Office (CSO). The IIP growth for November, 2017 was revised upwards to 8.8% from provisional estimates of 8.4% released last month. The IIP growth in December was mainly on account of uptick in manufacturing sector which constitutes 77.63% of the index. It grew by 8.4% during the month as compared to just 0.6% in December 2016.

The capital goods, a barometer of investments, showed a sharp increase in output by 16.4% in December, 2017 as against a decline of 6.2% year ago. The consumer non-durables, which are mainly fast moving consumer goods, too showed an increase of 16.5% as against contraction of 0.2%. As per use-based classification, the growth rates in December 2017 over December 2016 are 3.7 percent in Primary goods, 6.2% in Intermediate goods and 6.7 percent in Infrastructure/Construction Goods.

The Consumer durables have recorded growth of 0.9% in December 2017. In terms of industries, 16 …read more